Correlation Between Oppenheimer Gold and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Goldman Sachs at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oppenheimer Gold and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Gold Special and Goldman Sachs Clean, you can compare the effects of market volatilities on Oppenheimer Gold and Goldman Sachs and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Oppenheimer Gold with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Goldman Sachs.
Diversification Opportunities for Oppenheimer Gold and Goldman Sachs
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oppenheimer and Goldman is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean and Oppenheimer Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Oppenheimer Gold Special are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Clean has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Goldman Sachs go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Goldman Sachs
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 1.4 times more return on investment than Goldman Sachs. However, Oppenheimer Gold is 1.4 times more volatile than Goldman Sachs Clean. It trades about 0.05 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.04 per unit of risk. If you would invest 1,952 in Oppenheimer Gold Special on November 8, 2024 and sell it today you would earn a total of 713.00 from holding Oppenheimer Gold Special or generate 36.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Oppenheimer Gold Special vs. Goldman Sachs Clean
Performance |
Timeline |
Oppenheimer Gold Special |
Goldman Sachs Clean |
Oppenheimer Gold and Goldman Sachs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oppenheimer Gold and Goldman Sachs
The main advantage of trading using opposite Oppenheimer Gold and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Goldman Sachs can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.Oppenheimer Gold vs. Touchstone Ultra Short | Oppenheimer Gold vs. Gmo Emerging Ntry | Oppenheimer Gold vs. Morningstar Defensive Bond | Oppenheimer Gold vs. Franklin Adjustable Government |
Goldman Sachs vs. Gmo Quality Fund | Goldman Sachs vs. Vanguard Growth And | Goldman Sachs vs. Glg Intl Small | Goldman Sachs vs. Small Pany Growth |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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